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To: long-gone who wrote (14774)	7/21/1998 9:25:00 PM
From: goldsnow	Respond to of 116762

Japanese Stocks Fall as Next Prime Minister Seen Shuttering Weak Banks Japanese Stocks Fall as Next PM Seen Shuttering Weak Banks Tokyo, July 22 (Bloomberg) -- Japanese stocks fell, paced by banks such as Fuji Bank Ltd., on expectation the next prime minister will have to let weak banks fail. While former Cabinet secretary Seiroku Kajiyama has come out with the toughest stance on banks, Foreign Minister Keizo Obuchi -- the front-runner -- and Health and Welfare Minister Junichiro Koizumi, the darkhorse candidate, have all come out in favor of restructuring the banking industry. ''They appear to be committed to doing something that everybody else sees -- to allow the weaker banks to fail for the greater good of the stronger banks,'' said Andrew Aiken, director of equity derivative trading at Credit Suisse First Boston in London. The benchmark Nikkei 225 stock average fell 155.79 points, or 0.94 percent, to 16,400.90. The broader Topix index of all companies listed on the first section of the Tokyo Stock Exchange declined 11.41 points, or 0.89 percent, to 1265.76. Banks make up 14 percent of the Topix. Japanese banks and thrifts had a total of 35.2 trillion yen in bad loans as of the end of March, 25 percent more than at the end of September, according to the Financial Supervisory Agency. Fuji Bank fell 10 yen to 575. Sanwa Bank Ltd. shed 40 yen to 1,240. Sakura Bank Ltd. fell 7 yen to 337. Dumping Steelmakers such as Nippon Steel Corp. dropped after the U.S. slapped duties on steelmakers from seven nations including Japan, saying they're ''dumping'' stainless steel rod in the U.S. by selling at up to 34 percent below cost. Most Japanese steelmakers will pay a 25.26 percent duty. Daido Steel Co. will pay 34.21 percent. Nippon Steel will pay a 21.18 percent duty. ''Whenever you have duty of 25 percent, it's going to hurt the bottom line,'' said Winston Barnes, head of foreign equity sales at Nikko Securities Co. ''It's certainly not positive news.'' The Topix Iron and Steel index was the biggest loser among the industry sectors, falling 1.7 percent. Nippon Steel fell 4 yen to 255. NKK Corp. shed 5 yen to 146. Daido Steel lost 1 yen to 225. Top exporters such Sony Corp. as fell after U.S. stocks fell. The technology-laden Nasdaq Composite Index ended a nine- day winning streak, and the Dow Jones Industrial Average fell in its biggest drop in five weeks. That hurts Japanese companies which rely on robust growth in U.S. markets to compensate for sluggish domestic sales. ''(This is a) short-term correlation ... on the back of what we've seen in the U.S. and Europe,'' said Robert Reiner, managing director at Bankers Trust in New York and portfolio manager of the $1.4 billion BT International Equity Fund. ''Sony, Nintendo, Rohm hit all time highs this week -- profit taking doesn't spare even investors' favorites.'' Sony fell 70 yen to 13,320. Honda Motor Co. shed 70 yen to 5,340. Rohm Co. fell 150 yen to 15,260. Nintendo Co. fell 150 yen to 14,020. Nikkei 225 index futures for September delivery traded in Osaka fell 110 points to 16,370; those traded in Singapore fell 120 to 16,370. bloomberg.com@@yCsE5wYAydrPbCqd/news2.cgi?T=news2_ft_topww.ht&s=558243422

To: long-gone who wrote (14774)	7/23/1998 6:44:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116762

Dollar Rises vs Yen as Japan Placed on Review for Downgrade by Moody's Dollar Rises vs Yen as Moody's May Cut Japan's Rating (Update1) (Adds investor comment in 2nd paragraph, possibly downgrades by Moody's of Japanese companies in 2nd section. Updates rates.) New York, July 23 (Bloomberg) -- The dollar rose for a third day against the yen as Moody's Investors Service said it may cut Japan's credit rating, further eroding investor confidence in the country and hampering efforts to lift it out of recession. ''This is further confirmation that Japan has a long road ahead of it and real structural problems,'' said Laura Zimmerman, a global bond manager at Payden & Rygel in Los Angeles, which oversees $26 billion. ''That spells weakness in the yen. Japanese fundamentals are going to get weaker before they get better.'' In late New York trading, the dollar rose as high as 142.08 yen, its highest level since July 13, from 141.11 yesterday. It was recently at 141.45 yen and is up 8.3 percent this year. The U.S. currency fell to 1.7862 marks from 1.7882 as a decline in U.S. stocks offset expectations that German interest rates won't be headed higher any time soon. The dollar gave up some yen gains as talk circulated among traders in New York and London that the U.S. Federal Reserve sold Treasury bills on behalf of the Bank of Japan, in possible preparation for another round of intervention to defend the yen, traders and analysts said. A spokesperson at the Federal Reserve Bank of New York declined to comment on the speculation. ''At above 141 yen, you've got to be thinking about whether this is the time and place for the Fed to intervene again,'' said Ed Garston, currency analyst at I.D.E.A. Market Research in London. The U.S. and Japanese governments jointly sold an estimated $6 billion June 17 to defend the yen. The dollar started falling in Asian trading after Moody's, the U.S. rating company, said it was concerned about ''deep, structural problems in the (Japanese) economy that have defied conventional remedies.'' Japan Rating Japan's debt rating is currently ''Aaa,'' the highest possible and the same as that of the U.S., Germany and the U.K.. A lower rating would mean Moody's has growing doubts about Japan's creditworthiness. Moody's also said it may lower ratings of eight ''Aaa''- rated Japanese companies. Government and corporate downgrades could lead to higher government and corporate borrowing costs, as risk-averse global investors demand higher yields. ''This is a downgrading of the country and it's negative for the yen,'' said Joe Cambria, head of New York spot trading at Credit Suisse First Boston. If Moody's moves to downgrade, ''there would be nothing 'triple A' over there.'' The dollar could rise to 160 yen before the end of the year, he said. A Japanese company with an ''Aa'' rating currently has to pay 5 basis points more on debt issued in the eurobond market than a company with a higher ''Aaa'' rating. A company typically issues debt in the eurobond market when it wants to raise money overseas. More immediately, the dollar could rise as high as 143 yen today, said Tetsu Aikawa, a foreign exchange manager at Sanwa Bank Ltd. in Tokyo. A rising dollar comes as bad news to some U.S. companies that sell products overseas, because it means revenue denominated in foreign currencies translates into fewer dollars when companies bring profits home. Dow Chemical Co., the world's fifth-largest chemical company, said second-quarter profit dropped 18 percent in part because of the strength of the dollar. German Rates The dollar gained against the mark as the German central bank left its securities repurchase rate unchanged. The U.S. currency also is benefiting from expectations that German interest rates won't be headed higher any time soon. A report today showed German import prices dropped a greater- than-expected 0.9 percent in June, the 10th straight monthly decline and a further sign price pressures are absent from the economy. Analysts in a Bloomberg News survey forecast a 0.4 percent decline. Still, the U.S. currency gave up gains as U.S. stocks declined. The Dow Jones Industrial Average fell 106.08 points in midafternoon trading to 9022.83. Global investors selling U.S. securities often convert the dollar proceeds into other currencies. Elsewhere, sterling rose to $1.6510 from $1.6440 yesterday. The dollar was little changed at 5.9905 French francs from 5.9935 francs and at 1.5067 Swiss francs from 1.5110 francs. It was also little changed at 1761.80 Italian lire from 1764.50 lire and at 1.4942 Canadian dollars from 1.4964. bloomberg.com@@*1MhYwYAB9zrL5Wr/news2.cgi?T=news2_ft_topww.ht&s=560102302